Effective Demand, Local Governments and Economic Growth in Post-Mao China: A Spatial Econometrics Perspective
نویسنده
چکیده
The purpose of this study is to empirically test the validity of Kaldor’s laws of economic growth in China between 1978 and 2004 and to provide an alternative explanation of sources of Chinese economic growth in a Kaldorian perspective. First, in a spatial econometrics perspective using a regional data set, the present paper empirically verifies that Kaldorian hypotheses on economic growth hold in China during the sample period. Second, it suggests the empirical findings as proving the validity of a demand-side approach. Third, taking this implication, this study provides a more detailed alternative explanation of the sources and processes of economic growth in China during the sample period. Finally, considering a striking finding of the lack of spatial (regional) dependence among Chinese provinces, it also discusses the role of local governments in the development process in China. This study is expected to contribute to the literature as being one of the first studies that identifies sources of Chinese economic growth in demand side. JEL Classification: O11, O14, O53, R58
منابع مشابه
Spatial Spillover Effect of Public Infrastructure in Different GDP Sector Compositions: Spatial Panel Evidence in Eu-28 Regions
Spillovers have attracted wide attention in the areas of research in economics during the past decades. The reason for the interest in the topic lies in their important role in endogenous growth theory and the explanation of productivity growth. This paper investigates the spatial spillover of different types of public infrastructure on economic growth across EU-28 NUTS-II regions during 1995-2...
متن کاملLocal Impacts of the Post-Mao Development Strategy: The Case of the Zhujiang Delta, Southern China*
The post-Mao development strategy, beginning in 1978, contains two components: (1) economic reform; and (2) the open door policy. Economic reform started in rural China. Its final goal is to reshape the Chinese economy from one that is guided by administrative authorities to one that is market-oriented. The open door policy, on the other hand, aims to attract foreign investment, advanced techno...
متن کاملCalculation Local Fiscal Stress in Iranian Provinces Using the TOPSIS Method (by Emphasizing on Third and Fourth Development Plans)
There is a situation that due to economic shocks and imbalances in structural budgets and its continuation leads to stress in governments in uncertainty conditions. Fiscal stress as a volatile situation in financing of local governments can exacerbate the inability of governments to meet short-term and long-term fiscal commitments and excessive dependence on the central government. So the posit...
متن کاملSpatial Strategies of Urban Development: Rescaling and Territorialization in Post Reform China
This paper considers the urban spatial changes in China as rescaling and territorialization processes. Decentralization has led to the emergence of localism in China, in a fashion similar to western cities but with unique features and context of a transitional economy. Acquiring urban status and expanding urban space have become a new strategy for lasting local development, resulting in a massi...
متن کاملAnalysis of Socio-Economic Effects of Metropolises on Suburban Villages from the Perspective of Local Communities (Case study: Mehrabad village - Damavand city)
Cities and villages are the main centers of human societies. They shape the geographical foundations of an area that have special relationships with each other based on socio-economic and spatial characteristics. The rapid spread of technology in recent decades has transformed the way of living and working in cities and villages. On the one hand, this expansion has caused anti-urbanism and on t...
متن کامل